G-P cuts

Sims declined to say how many people were let go, but did affirm at least some chose to leave on their own. The plant had employed 240 people.

"We're not going to reduce any shifts," said Sims. "This is strictly salaried employees."

Despite Sims' assurances, he also noted orders are currently only 85 percent of what the plant needs to run at full capacity. The plant stood idle at times in December and, after running near capacity in January, again was idled for five days earlier this month. Sims specifically cited Portland-based Willamette Industries, N.C., as one of the chief competitors giving the Gaylord G-P a tough time.

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"They produce a product that is very similar to us but at a lower cost because of their newer technology," said Sims. "It's a supply-and-demand situation. As this facility gets older, the newer technology offers more competition. I want people at the plant to understand we can't do things the old way."

He stated in a memo to employees Wednesday that maintenance, capital and overtime budgets all had been scrutinized for any possible savings.

Willamette Industries announced late last year it had entered into talks with the Georgia-Pacific Corp. concerning the purchase of the G-P Building Products Division. Gaylord's plant fell into the category of those being considered as a producer of particle board used in ready-to-assemble furniture, office furniture, mobile home flooring and components for store shelving and countertops.

Willamette representatives visited the Gaylord site but discussions broke down when that company accepted a purchase offer from Weyerhauser Co. for more than $5 billion. The Weyerhaeuser Company in Grayling employs 165 people in its Oriented Strand Board (OSB) mill producing structural panels for subfloors, floors, walls and roofing.

"We were out of alignment with competitors as far as the number of salaried employees-to-hourly employees," said Sims. "Things are getting worse, but we can do something about it. We're still in good shape."

G-P employees who received the company's memo will gather Monday afternoon at the Gaylord Inn for an informational meeting.